SSS releases P720-M student loans

MANILA, Philippines - The Social Security System (SSS) has released a total of P719.86 million in “study now, pay later” loans for student beneficiaries who availed themselves of the pension fund’s educational assistance loan program.

Launched in 2012, the program is a joint project between the SSS and the government that has benefited a total of 39,970 students as of end-July this year.

Around P7 billion has been earmarked for the program that provides loans at affordable terms for tuition and miscellaneous fees for college, vocational and technical courses.

Under the program, SSS members can borrow up to P20,000 for college and P10,000 for vocational or technical courses every semester or trimester until the beneficiary graduates.

SSS president and chief executive officer Emilio S. de Quiros Jr. said the loan beneficiaries can be the members themselves as well as their legal spouse and children.  Married members can borrow for up to two beneficiaries while unmarried members can use the loan for the education of their sibling, including their half-brother or half-sister.

 â€œThe Educ-Assist program helps ease the financial worry that parents and family breadwinners face during school enrollment. With the coming second semester enrollment, we encourage SSS members to consider the Educ-Assist facility as a financing option for their loved ones to gain wider access to education and better job opportunities, as the grant of the program shall be made available until the entire fund has been fully allocated,” De Quiros said.

Initial availments or funds released to first-time educ-assist borrowers, reached P563.76 million while subsequent availments, or loans disbursed to repeat borrowers, stood at  P156.10 million.

“Members benefit from Educ-Assist’s low interest rate of only six percent per annum for the SSS portion, which will be based on the diminishing principal balance until full payment, while the NG’s portion carries zero interest,” De Quiros said.

The repayment period is up to five years for loans used for college degree programs and up to three years for voc-tech courses. Loan repayment will only start one year after the date of graduation or the date of last loan release for those who will not avail of the subsequent loans. A monthly penalty of one percent will be charged for any unpaid amortization.